PAWHUSKA, Okla. – The U.S. Attorney’s Office will not prosecute and issue formal charges against the former Pawhuska Indian Village Five-Man Board members, announced Osage Attorney General Jeff Jones Aug. 6.

Speaking to the Osage Congress’ Government Operations Committee, Jones said in light of the U.S. Attorney’s Office’s decision, his office will pursue an investigation through the tribe’s judiciary. Other than concerns over the village’s constitution, no justification was announced for the Department of Justice’s non-involvement.

“They (the U.S. Attorney’s Office) informed me that they are not going to prosecute the Five-Man Board case,” Jones said. “They’ve chosen not to take that case so that puts it back into my lap. Just this morning at 10 a.m., the FBI agent brought back all the evidence we had given them so I’ve got it back in my office. I will be beginning to start prosecuting that.

“I was kind of disheartened that they didn’t take this. They’ve got a broader range of punishments than I do. In tribal court, all I can pursue is a misdemeanor, but I can still prosecute them.”

Under the tribe’s criminal code, the maximum penalty a person could receive for an embezzlement conviction is one year in jail and/or a fine of up to $1,000. If the value of the property embezzled is more than $1,000, a sentence of banishment may be imposed for up to 10 years in addition to the fine and jail time. The same potential penalties also apply to those convicted of receiving stolen property.

Released last fall, the audit, conducted by the Osage Nation’s Office of Fiscal and Performance Review, shows that between October 2008 and July 2012, the Pawhuska Indian Village received $857,025.93 in lease funds from the Osage Nation’s casino in Pawhuska. The casino is located on the southeastern corner of the village’s property held in trust.

Payment records show that $50,732.37 of that money went to cover utility expenses with the City of Pawhuska for village residents and entities, including more than 40 payments for bills accrued by Joe Don Mashunkashey, then-chairman of the village’s governing five-man board.

The federal government’s decision to not pursue criminal charges does not impact the ability of the Internal Revenue Service to get involved. A timeline has not been announced, but an investigator from the IRS’ Oklahoma City office has been assigned to the case thanks to the village’s unpaid taxes.